Question
The standard deviation of the market-index portfolio is 20%. Stock A has a beta of 1.5 and a residual standard deviation of 30%. a. Calculate
The standard deviation of the market-index portfolio is 20%. Stock A has a beta of 1.5 and a residual standard deviation of 30%.
a. Calculate the total variance for an increase of .15 in its beta. (Do not round intermediate calculations. Round your answer to 4 decimal places.)
Total variance
=2.8525 is a wrong answer. = 0.1989 is a wrong answer
b. Calculate the total variance for an increase of 3% in its residual standard deviation. (Do not round intermediate calculations. Round your answer to 4 decimal places.)
Total variance = 2.3855 is a wrong answer / = 0.1989 is a wrong answer
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Mergers Acquisition And Other Restructuring Activities
Authors: Donald M. Depamphilis
6th Edition
123854857, 978-0123854858
